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The announcement during the regional State of the State address at the University at Albany is aimed at protecting customers from overcharging by drug manufacturers, the governor said.

"No family should have to choose between buying drugs, and paying for food or for rent," Cuomo said. "We need a comprehensive plan to rein in the cost of prescription drugs, and that’s what we’re going to do."

Under the state's Medicaid program, drug companies would need to provide rebates to customers who surpass any price set by the state's Drug Utilization Review Board.

Rising drug prices has led to a $1.7 billion increase in the state's Medicaid program, which costs more than $60 billion a year, and has prevented New Yorkers from accessing life-saving medicine, according to Cuomo’s office.

Another initiative would be to place a surcharge on drug manufacturers who exceed the benchmark established by the review board.

The money will be deposited into a Department of Financial Services fund and then reallocated the following year to insurers and businesses so that they can lower insurance premiums.

The third step would tighten regulations over intermediaries known as Pharmacy Benefit Managers, who negotiate drug prices for insurance plans and employers.

The measures would need approval of the state Legislature.

Cuomo said rising prescription-drug prices are a problem around the state and the nation, citing the recent flap over the 500 percent increase in the cost over the past five years for the EpiPen, the allergy medication.

“We’re pleased to see Governor Cuomo give the issue of prescription-drug costs and the need to do something to control those costs the attention it rightly deserves,” Paul Macielak, the group's CEO, said in a statement.

On Wednesday, President-elect Donald Trump also pledged to address prescription-drug prices, saying he too plans to take on the industry.

Trump said he would seek "new bidding procedures for the drug industry, because they're getting away with murder."